- Export of services subject to final tax regime in Pakistan
- Final tax rate of 0.25% for IT services and software exports by PSEB-registered entities
- Final tax rate of 1% for other service exports
- Categories under final tax regime include services rendered outside Pakistan, royalty/commission/fees, construction contracts executed abroad, foreign commission due to indenting agents, and other services
- Aim is to encourage growth of IT sector and streamline tax process for service exports
- Decision aims to provide tax certainty and reduce compliance burdens for exporters
- Low and straightforward tax rates to foster conducive environment for service exporters
- Part of broader effort to enhance Pakistan’s export competitiveness and attract foreign investment
- IT sector seen as critical driver of economic growth
- Tax policies play pivotal role in shaping Pakistan’s export landscape
Source: pkrevenue.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
